Home Builder Insurance That Helps Protect What You Build.
From breaking ground to the final walkthrough, every home building project brings unique risks. Our agents compare options from 20+ top-rated carriers to help build insurance solutions tailored to your residential construction business.
THE FIRSTMARK CHALLENGE
A better way to review coverage.
Four simple steps. Zero obligation.
Have A Conversation.
We shop the markets.
Review the results.
You decide.
- Licensed in 39 states
- 20+ Insurance Carriers
- Headquartered in Edmonds, WA
- Independent & Unbiased
A better way to review coverage.
The Firstmark Challenge
Our simple, guided process makes reviewing your insurance easy. We take the time to understand your needs, compare options across top carriers, and present clear results—so you can make a confident decision.
01
Have A Conversation
02
We Shop The Markets
03
Review The Results
04
You Decide!
Build Homes with Confidence—and the Right Protection
With FirstMark Insurance’s dedicated commercial insurance team, you get local experts comparing coverage from over 20 insurance carriers to help protect your home building business, projects, employees, equipment, and vehicles—with strong coverage and competitive pricing.
Home builders manage complex construction projects involving employees, subcontractors, building materials, heavy equipment, vehicles, and multiple trades. From preparing a site and coordinating construction to completing the final details of a new home, each stage of the building process can introduce potential risks.
Home builder insurance can help protect your business against certain risks involving property damage, injuries, construction materials, vehicles, equipment, and other unexpected losses. Whether you build custom homes, manage residential developments, or construct several homes each year, an insurance program can be tailored around the size and scope of your operation.
The appropriate coverage may depend on annual revenue, payroll, project values, number of homes constructed, employees, subcontractor usage, vehicles, equipment, and the types of residential construction projects you perform.
What Insurance Does a Home Builder Need?
Home builder insurance generally isn't a single policy. Instead, an insurance program may combine several types of commercial insurance coverage designed to address different exposures throughout the construction process.
General Liability Insurance
Home builder general liability insurance may help protect your business against certain claims involving bodily injury or property damage arising from construction operations.
For example, construction activity could accidentally damage neighboring property, a visitor could be injured around a jobsite, or completed work could potentially contribute to property damage after construction has been finished. Depending on the circumstances and policy terms, general liability insurance may provide coverage for qualifying claims.
Property owners, lenders, developers, and other organizations may also require proof of general liability insurance before construction begins.
Builders Risk Insurance
Builders risk insurance can be particularly important for new home construction. Depending on the policy, builders risk coverage may help protect a home while it is being constructed against certain covered causes of loss.
Coverage may extend to the structure under construction as well as certain building materials and supplies intended to become a permanent part of the completed home.
Builders risk policies can vary significantly. Coverage for theft, vandalism, weather-related losses, materials in transit, temporary storage, and other exposures may depend on the particular policy and endorsements selected.
Workers' Compensation Insurance
Residential construction can expose employees to power tools, ladders, heavy materials, machinery, uneven terrain, and other jobsite hazards.
Workers' compensation insurance may provide benefits for qualifying employees who experience work-related injuries or illnesses. Requirements can vary depending on the structure of the business and where the home builder operates.
Commercial Auto Insurance
Home builders may use pickup trucks, vans, trailers, and other vehicles to travel between jobsites and transport employees, materials, tools, and equipment.
Commercial auto insurance may provide liability and physical damage coverage for qualifying business-owned vehicles. Additional coverage options may be available depending on vehicle ownership and use.
Materials, tools, and equipment transported by business vehicles may require separate coverage and should be discussed with an insurance professional.
Tools and Equipment Insurance
Home builders may own a substantial amount of portable construction equipment. Tools and equipment coverage, often provided through inland marine insurance, may help protect qualifying property while it is at a jobsite, being transported, or temporarily stored away from the primary business location.
Coverage may be available for items such as:
- Power tools
- Generators and compressors
- Saws and specialty equipment
- Ladders and portable scaffolding
- Jobsite equipment
- Construction tools
- Other portable contractor equipment
Larger equipment may require separate contractors equipment coverage. Available protection, limits, and deductibles can vary by policy.
Commercial Umbrella or Excess Liability Insurance
Home construction projects can potentially result in significant liability claims. Some builders may need additional liability limits beyond those provided by their primary policies.
Commercial umbrella or excess liability insurance may provide additional limits above certain underlying insurance policies. Higher limits might also be required by lenders, developers, property owners, or contractual agreements.
Insurance for Different Types of Home Builders
Residential builders can operate under many different business models, and the type and volume of construction performed may influence insurance eligibility, coverage options, and cost.
Insurance options may be available for businesses involved in:
- Custom home construction
- Spec home construction
- Single-family home building
- Luxury home construction
- Residential developments
- Townhome construction
- Major additions
- Residential general contracting
- New construction project management
Home builders should accurately describe the types of projects they perform, average and maximum project values, number of homes constructed annually, and the extent to which work is performed by employees or subcontractors.
Home Builders and Subcontractors
Many home builders rely heavily on subcontractors for trades such as excavation, concrete, framing, roofing, plumbing, electrical, HVAC, drywall, painting, and flooring.
Insurance companies may have specific requirements regarding subcontractor usage. Builders may need to verify that subcontractors maintain appropriate general liability and workers' compensation insurance and obtain current certificates of insurance.
Written subcontractor agreements and additional insured requirements may also be appropriate. Insurance companies might establish minimum limits or other requirements for subcontractors performing work on behalf of the builder.
Because subcontractor usage can significantly affect a home builder's insurance program, these relationships should be accurately disclosed when obtaining coverage.
Completed Operations Coverage for Home Builders
A home builder's liability exposure doesn't necessarily end when construction is complete and the homeowner receives the keys.
Claims involving completed work can potentially arise months or even years after a project is finished. Depending on the circumstances, a construction defect or failure involving completed work could result in damage to other portions of the property.
General liability policies may include products-completed operations coverage for certain qualifying claims. However, coverage varies based on policy language, exclusions, applicable limits, and the circumstances surrounding the loss.
Home builders should carefully review completed operations coverage with an insurance professional, particularly when constructing multiple homes or larger residential projects.
Protect Your Home Building Business
A home building company represents a substantial investment in employees, subcontractor relationships, vehicles, equipment, projects, and professional reputation. Appropriate business insurance can help provide financial protection when certain unexpected accidents or losses occur.
The insurance needs of a custom home builder constructing a few homes each year can be very different from those of a builder managing multiple developments. Annual revenue, payroll, construction volume, maximum project value, subcontractor costs, vehicles, equipment, and claims history can all influence coverage needs and pricing.
Working with an independent insurance agent can provide access to multiple insurance companies and coverage options, helping you find an insurance program appropriate for your home building business.
FAQs
What insurance does a home builder need?
A home builder's insurance program may include general liability, builders risk, workers' compensation, commercial auto, tools and equipment, and commercial property insurance. Umbrella or excess liability and other specialized coverage may also be appropriate depending on the builder and projects performed.
What does builders risk insurance cover when building a home?
Builders risk insurance may help protect a home while it is under construction against certain covered causes of loss. Depending on the policy, coverage might also be available for qualifying building materials and supplies. Covered property, causes of loss, limits, deductibles, and exclusions can vary significantly between policies.
Does home builder insurance cover subcontractors
Subcontractors generally should maintain their own appropriate insurance coverage. Home builders may need to obtain certificates of insurance, establish minimum coverage requirements, and use written subcontractor agreements. Specific requirements can vary by insurance company and project.
How much does home builder insurance cost?
Home builder insurance costs can vary based on annual revenue, payroll, number of homes built, project values, subcontractor costs, construction types, vehicles, equipment, claims history, and selected coverage limits. Comparing options from multiple insurance companies can help identify an insurance program appropriate for the business.